That’s a tough one, Stephen. Student loans have onerous collection fees, can’t be discharged in bankruptcy and generally have higher interest rates than mortgages. But they’re also unsecured loans. Your mortgage is secured by your home. Including a student loan in your home loan will mean a higher mortgage payment. So, if you can’t pay your mortgage at some point because your student loans make the payment too high, you can lose your home. If you’re buying the home with someone else, adding your student loan to the mortgage means, in effect, the other person is helping pay your student loan. Are they willing to do that? And the added risk of including your student loan in your mortgage makes their stake in your shared home riskier as well. So, if you’re thinking about adding a student loan to your mortgage, let’s talk about it first. 303-696-6933.
Stephen Asks… Can I pay my student loans with the equity in my home?
